Becker's Hospital Review

Sign up for the COMPLIMENTARY Becker's Hospital Review CEO Report & CFO Report E-Weeklies at www.BeckersHospitalReview.com or call (800) 417-2035 39 Urgency Emergency: 5 Ways CEOs Can Cure Complacent Hospitals By Molly Gamble  Q uint Studer, founder and chairman of the board of Studer Group, tends to disagree about something with his wife — when to arrive at the airport. "I want to get there a day and a half early. She wants to get there with just enough time to run on the plane," he says. The difference doesn't stir up too many problems, but it does paint a picture of two people with different senses of urgency. To Mr. Studer, getting on the plane is of utmost importance. To Mrs. Studer, however, Mr. Studer is overreacting. The same dynamic plays out in many hospitals. Often, there are dramatic differences in urgency at different levels of leadership. However, C-suite leaders don't always realize this — they may believe there is more urgency in the workforce than there really is. While mid-level leaders may think senior leaders are overreacting, the senior leaders may be underestimating the degree of complacency that exists elsewhere in the organization. "Complacency is much more common than people may think," says Mr. Studer. "And until recently, that complacency has been very difficult to objectively measure." Sometimes, the problem can even manifest itself in subtle ways, such as leaders showing up late to meetings. Mr. Studer recently diagnosed a hospital as complacent when he was lost among its halls. "It was obvious I was lost, but nobody was anxious to show me where I should go," he recalls. While missing the occasional flight may not be the end of the world in a marriage, the same isn't true for failing to quickly respond to the demands reshaping the healthcare industry. In hospitals, an urgency disconnect can be devastating. Even a subtle sign of complacency is a glaring red flag — especially if it starts in the C-suite and moves its way down. Studer Group has assessed more than 26,000 hospital leaders from small to large systems about their sense of urgency. When C-suite leaders were asked to rate the difficulty of the next five years on a scale of one to 100, they responded with an average rating of 92, meaning "they almost all think the next five years will be very difficult," says Mr. Studer. C-suite leaders were also asked to look back and rate the difficulty of the previous five years. That rating sat closer to 70. But here is where the gap widens. When leaders outside the C-suite — from supervisors through directors — rated the difficulty of the next five years, their responses averaged at about 70. When they looked back on previous five years, they rated the difficulty closer to a 60. "Yes, senior leaders think the next five years will be more difficult, but not near the level of the CEOs' urgency," explains Mr. Studer. "CEOs get frustrated because they're sitting there thinking, 'Where's their urgency?' And the supervisors, managers and directors are thinking, 'Why are they overreacting? Once again, the sky is falling.'" "It's like anything in life," he adds. "If people think something is going to be difficult, they'll be better prepared. Then, even if it turns out not as difficult as they thought it would be, they'll be OK. But people who don't think it will be difficult won't be prepared…and that's when damage occurs." As part of another assessment, Studer Group asked senior leaders the following question: "If your organization continues as it is today — with the same processes, cost structure, efficiencies, patient care volume, productivity, and techniques — will the results over the next five years will be much worse, worse, same, better, or much better?" "Members of the C-suite see that question and think it's obvious," says Mr. Studer. "They say, 'Of course if you stay the same, results are going to get much worse.'"   The scenario is comparable to an adult maintaining the same spending habits stay while experiencing a decline in income, he adds. Obviously, that individual's financial conditions will worsen.     But this finding takes CEOs by surprise, sometimes to the point of expressing genuine disbelief, says Mr. Studer: On average, 37 percent of respondents below the C-suite level feel that if they continue to work in the same way, their hospitals' results will stay the same, get better or get much better. And that 37 percent is only an average — Mr. Studer worked with one hospital where 45 percent of people said that if their performance remained the same, their organization's results would stay the same. The implication is clear: many organizations are suffering from a complacency epidemic at a time when urgency needs to be at an all-time high. 5 cures for complacency The good news is organizations can prevent, reduce or cure complacency and get everyone's urgency levels more aligned. Mr. Studer offers the following strategies for doing just that. 1. Start by sharing information. Members of the C-suite are surrounded by different discussions, resources and professional events from those of managers, supervisors and other leaders. CEOs frequent roundtable events and conferences, where they discuss the healthcare environment with peers and other like-minded experts. They read extensive literature on healthcare reform, are attuned to statewide hospital advocacy efforts and are highly involved in strategic planning. On the other hand, managers and other leaders outside of the C-suite may be pressed enough by keeping up with their day-to-day work. "Due to their environment, C-suite executives often fall into the trap of believing people see healthcare the same way they do," says Mr. Studer. Instead of introducing a medley of improvement initiatives to bridge the gap in urgency, Mr. Studer recommends CEOs and members of the C-suite start from a simple place. First, convince other leaders outside of the C-suite that they actually need to change. For instance, provide them with a resource toolkit or information packet that illustrates the root causes for the C-suite's urgency. "When CEOs attend panels or conferences, they sometimes don't bring detailed information back to other leaders because they assume those leaders already see it as they do," says Mr. Studer. "If I see clouds coming overhead, I don't necessarily feel the need to tell people it's going to rain. But maybe they've been trapped inside for a long time and don't see those clouds. We just can't assume that others see the environment the way we see it."  This packet should be a collection of financial data, healthcare studies, whitepapers and other resources that drive C-suite discussions. Mr. Studer recommends CFOs also put together

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